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SEB to Control Zhejiang Supor Cookware(Comtex Business Via Thomson Dialog NewsEdge) SHENZHEN, Aug 17, 2006 (SinoCast China Financial Watch via COMTEX) --Zhejiang Supor Cookware Co. Ltd. (002032.SZ) announced SEB S.A., a France-based electrical appliance manufacturer, is going to acquire at most 61 percent of its shares as strategic investor. The deal will come at a cost of CNY 2.372 billion, representing the largest foreign strategic investment in a Chinese listed company to date. Pursuant to their strategic investment agreement, SEB will initially acquire 25.32 million shares or 14.38 percent of the issued stock capital of Supor Cookware from its parent Supor Group and some individual investors. The Shenzhen-listed Supor Cookware then will place 40 million new shares to the French company, adding the latter's shareholding to over 30 percent. SEB later will make an offer to buy another 66.452 million shares or 30.76 percent of the enlarged stock capital under China's regulations and laws. These shares to be sold are priced at CNY 18 each, translating to approximately 10 percent premium to Supor Cookware's market price. On August 11, Shares of Supor Cookware closed at CNY 16.34 on the SME board of Shenzhen Stock Exchange. SEB is principally engaged in manufacture and distribution of electrical appliance and household goods. The products are marketed in more than 120 countries under the brand names: Moulinex, Krups, Tefal and Seb. Each of the brands is renowned as a specialist in their markets. It also agreed to transfer some OEM contracts to the Zhejiang-based cookware manufacturer after the strategic investment, provide technical support and market Supor-branded products via its international sales network. All these measures are believed to help turn Supor into a major brand in global cookware manufacturing. Supor Cookware currently is a first-ranked cookware maker in China, particularly it has been seizing over 50 percent of the pressure cooker market since 1998. The company's principal activity is to manufacture and distribute cookware and small electrical appliances. The cookware products include pressure cookers, non-stick saucepan, work, dutchoven, frypan and griddle. The electrical appliances including rice cooker, microwave oven, gas stove and dish washer are manufactured by the subsidiary Zhejiang Supor Electrical Appliances Manufacturing Co., Ltd., which has an annual production capacity of more than 3,500,000 pieces. Supor Cookware began marketing products overseas since 1998 after building up a leading position domestically. The main export destinations include the United States, Europe and Japan. On the other hand, the deal would give SEB an easy access into a huge consumer market. It is estimated that about 33 percent of 160 million urban families would move into new houses over next ten years, that is, 5.28 million household kitchens would be reinstalled. High-end culinary articles comprising cookware and small electrical appliances are getting popular on upward living standard of the Chinese. In the process, the mainstream articles are electrical cookware while energy-efficient and environment- friendly products will appear as highlights. Supor Cookware would bring a signaling effect on the indigenous counterparts which are keen on seizing a slice of international high-end market. There are 1,300 culinary articles makers in China, over half of which are located in Guangdong province in the south and over 15 percent in Zhejiang province in the east. China's culinary article exports that account for 55 percent of the global total mainly consist of middle-end stainless steel cookware, pressure cooker and non-stick work. (USD 1 = CNY 7.9) From www.nbd.com.cn, Page 1, Wednesday, August 16, 2006 [email protected] Copyright (C) 2006 SinoCast LLC. All rights reserved |